Paul Krugman: Don’t Give In To GOP Blackmail. Let The Tax Cuts Expire

Let the tax cuts expire and be on the heads of the Republicans who want to hold Democrats and the White House hostage to keeping cuts for the rich, figuring they won’t take the political risk. Paul Krugman says it’s a risk worth taking.

So the potential cost of giving in to Republican demands is high. What about the costs of letting the tax cuts expire? To be sure, letting taxes rise in a depressed economy would do damage — but not as much as many people seem to think.

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Last but not least: if Democrats give in to the blackmailers now, they’ll just face more demands in the future. As long as Republicans believe that Mr. Obama will do anything to avoid short-term pain, they’ll have every incentive to keep taking hostages. If the president will endanger America’s fiscal future to avoid a tax increase, what will he give to avoid a government shutdown?

So Mr. Obama should draw a line in the sand, right here, right now. If Republicans hold out, and taxes go up, he should tell the nation the truth, and denounce the blackmail attempt for what it is.

Obama would get credit, and kudos, for taking a stand, even from those who may disagree with it.